Detailed Answer

This article explains how settlement proceeds are typically delivered and distributed in Nebraska and what to expect from the moment an insurance company issues a check until you receive your net money. This is general information only and is not legal advice.

Who the check is made payable to

The first practical issue is the name(s) on the check. Insurance companies may make checks payable to one or more of the following:

• The claimant (you).
• The claimant and the claimant’s attorney (a joint check).
• A provider to satisfy a lien (medical provider, hospital, or other creditor).
• A conservator, guardian or personal representative if the claimant is a minor or legally incapacitated.

If the check bears more than one payee (for example, “Jane Doe & John Doe”), all named payees usually must endorse the check before it can be deposited.

Common ways you will actually receive the money

1. Direct deposit or check to you alone: If the insurer issues the check solely in your name, you can endorse and deposit it into your bank account. Expect your bank’s hold policy to apply until the check clears.
2. Joint payee check (you and your attorney): If the check lists both you and your attorney, ethical rules and common practice require the attorney to deposit the payment into the firm’s client trust (IOLTA) account, clear outstanding liens, pay agreed attorney fees and costs, provide a written settlement statement, and then send you the remaining net funds. Many firms will wire or issue a check to you once the trust-account clearance period ends.
3. Check payable to you and a medical provider or lienholder: The provider may need to endorse the check or the insurer may send a separate check to the provider. Some medical providers require evidence of the settlement and court approval (for minors or incapacitated persons) before releasing their lien.
4. Check payable to a guardian, conservator or court: If you are a minor or incapacitated person, Nebraska law and local court practices may require court approval before funds are delivered to the guardian/conservator. The guardian/conservator will then distribute funds under court supervision. See Nebraska probate and guardianship statutes for procedures on handling monetary settlements: https://nebraskalegislature.gov/laws/statutes.php?chapter=30
5. Structured settlement / annuity: If the parties agree to a structured settlement, the insurer purchases an annuity and the claimant receives periodic payments rather than a lump sum. You will receive documentation from the annuity issuer, and future payments will be made according to that contract.

What an attorney does with a settlement check (typical steps)

When an attorney is involved, you can generally expect the following:

• The attorney endorses and deposits the check into the lawyer’s client trust account (required by professional conduct rules in most jurisdictions).
• The attorney clears any medical liens, subrogation claims, court-ordered amounts, or outstanding costs and expenses.
• The attorney deducts agreed attorney fees and reimbursable costs.
• The attorney prepares a settlement ledger or closing statement showing gross recovery, deductions, and net amount due to you.
• The attorney wires or issues a check to you for the net proceeds and keeps records of the transaction. Expect a short waiting period for the check to clear.

Timing — how long until you get your money?

Timing depends on several factors:

• Whether the check is a single-payee or joint-payee check.
• Bank clearance times — banks often place holds on large checks until the insurer’s funds fully clear.
• Any liens, subrogation, or outstanding bills that must be resolved.
• Need for court approval (common when minors or incapacitated persons are involved).

In routine adult cases with no liens, you may receive funds within a few days to a few weeks after the insurer issues the check. When there are liens, structured settlements, or court approvals, distribution can take much longer.

Important legal and administrative issues to watch for in Nebraska

• Guardian or conservator involvement for minors or incapacitated persons: Nebraska’s probate and guardianship statutes govern how a court may approve compromises and distributions. See Chapter 30 (Probate) for relevant procedures: https://nebraskalegislature.gov/laws/statutes.php?chapter=30
• Attorney handling of client funds: lawyers must follow professional rules for safekeeping and accounting. If you have concerns about how an attorney handles settlement funds, Nebraska’s judicial branch provides the rules that govern attorney conduct and you can contact the Nebraska Supreme Court for guidance: https://supremecourt.nebraska.gov/
• Medicaid or other governmental liens: if you receive public benefits, Nebraska DHHS or a federal program (like Medicare) may assert a claim for conditional payments or reimbursement. Contact the relevant agency to confirm whether repayment is required before distribution. Nebraska Department of Health & Human Services: https://dhhs.nebraska.gov/
• Tax considerations: parts of a settlement (for example, non-physical injury or punitive damages) may be taxable. Speak with a tax professional before making tax-related assumptions.

If something goes wrong

If you don’t receive funds you expect or you suspect mishandling:

• Ask the attorney or insurer for a written accounting or status update.
• Request copies of the endorsed check and bank deposit records.
• Contact the insurer’s claims office and ask who the payees are and why a joint check was issued (if relevant).
• If you suspect misconduct by an attorney, contact the Nebraska disciplinary counsel or the Nebraska Supreme Court for filing complaints. For attorney conduct information see: https://supremecourt.nebraska.gov/

Practical checklist you can use right away

• Confirm who the check is payable to and ask the insurer for written confirmation.
• Ask your attorney for a written timeline and a sample settlement statement.
• Confirm any liens or subrogation claims in writing and ask how they will be resolved.
• If you are a minor or incapacitated, ask whether court approval is required and how long approval should take.
• Keep copies of everything: the settlement agreement, the check image, endorsement copies, and the final ledger.

Helpful Links

• Nebraska Revised Statutes — Probate and guardianship (Chapter 30): https://nebraskalegislature.gov/laws/statutes.php?chapter=30
• Nebraska Supreme Court (rules, attorney regulation and resources): https://supremecourt.nebraska.gov/
• Nebraska Department of Health & Human Services (Medicaid questions): https://dhhs.nebraska.gov/
• Nebraska Department of Insurance (consumer resources): https://doi.nebraska.gov/

Helpful Hints

• Do not sign a blank settlement release or endorse a check without understanding who will be paid from it.
• Get a written explanation of all deductions (attorney fees, costs, liens) before you accept final payment.
• Ask your attorney for a final settlement ledger showing gross recovery and each deduction so you can verify the net payment.
• If the insurer issues a joint check to you and your attorney, expect the attorney to place funds in a client trust account until any holds clear.
• If you receive public benefits, contact the benefits office before accepting funds so you can avoid unexpected repayment obligations.

Disclaimer

This information explains common practices under Nebraska law but is not legal advice. Laws and procedures change. For advice about your specific case, contact a licensed Nebraska attorney or the appropriate state agency.